Saturday, June 15, 2024

Fintech Startup Tomo Doubles Mortgage Footprint, Reaches Quarter of U.S.

Tomo, the fintech startup that’s transforming the home-buying experience, has announced it has doubled its mortgage footprint and now serves nearly a quarter of the U.S. market after expanding into FloridaConnecticut and Colorado. The company also added jumbo loans to its product portfolio. The company’s rapid expansion comes less than a year after Tomo first launched its home-buying technology platform in Washington and Texas, and in the wake of its $70 million seed round, one of the largest ever raised in the U.S. Tomo was founded in October 2020 by former Zillow executives Greg Schwartz and Carey Armstrong.

“The mortgage is the catastrophe of the real estate transaction,” said Greg Schwartz, Tomo’s chief executive officer and co-founder. “For too long, homebuyers have been forced to accept an outdated process that’s painful, cumbersome and expensive. Tomo’s rapid expansion is proof that there’s tremendous appetite for what we’ve built – a digital experience, designed from the ground up to meet the needs of homebuyers today.”

Aimed at disrupting the multi-trillion-dollar mortgage market, Tomo pairs its proprietary technology with local experts to deliver a simpler, faster, less expensive mortgage experience. The result eliminates complexity, reduces cost, and ensures on-time closings, all without the traditional headaches characteristic of the industry today. In 2021, Tomo closed 100% of its loans on time. Tomo’s successful track record of closing on time is partly a result of their exclusive focus on fixing the purchase mortgage experience. This stands in stark contrast to the vast majority of lenders that cyclically chase the refinance market. Today, many of those mortgage originators find themselves scrambling to contend with new economic and operational realities as refinancings dry up.

Creating pre-approvals for customers within hours, not days, Tomo delivers the best rate for every homebuyer they serve; charges no lender fees; and ensures an on-time closing. The company has also partnered with the very best real estate agents in every market they serve to provide a complete home-purchase experience with ease, simplicity and confidence.

“Having a cutting-edge mortgage company available to help homebuyers purchase their dream home is one of the most important factors when they are ready to make offers,” said Ruben Orozco, a real estate agent at RE/MAX Legacy in Sanford, Florida. “Tomo is fast becoming the premier lender when buyers need quick responses with super fast decision making. Homebuyers want a lender that is in their corner building relationships and available when they need answers.”

In volatile housing markets, such as in MiamiDenver or Stamford, consumers need all the help they can get. New Yorkers have left dense urban areas in favor of larger layouts and greenspace in Connecticut. In Denver, home prices continue to hit all-time highs month after month, and a metro area residence now costs five times a family’s average income. Across Florida, businesses and professionals are flocking to the state, leaving behind high-tax areas. In Tampa alone, sales have surged nearly 30% in the last year.

Addressing those rising costs, Tomo’s launched its jumbo loan product to allow customers to borrow more to purchase higher-priced properties, and is available everywhere the company operates. Tomo’s jumbo loans will be available for both 15-and-30-year cycles. For qualifying buyers, loans can be distributed in amounts up to $3 million.

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